It’s been a while since I’ve dropped one of these short form articles, so I figured I’d get some quick thoughts down on the market and some of the stock I cover.
Let’s get to it.
CYBL
I tweeted today that even though I’ve been writing some pretty negative pieces on CYBL with regards to their reporting quality, I didn’t think it was a fraud. Why do I say that? Two words, George Sharp. Ever since I’ve released those two CYBL articles, GS has been quoting them on Twitter to further his beef with CYBL and Brett Rosen.
I’ve generally not been a fan of GS in the past. Sometimes I agree with what he’s saying, but most of the time I don’t. His analysis and public persona has WAY too much negativity associated with it that I find him hard to be a credible source, whether he’s right or not. It sort of ruins the “crusade” he’s trying to do.
So let’s get one thing clear, the main purpose of this site is not to short and distort or become some kind of bastion of negativity for various companies. I generally don’t find it fun, and it was actually kind of annoying writing those CYBL articles, but it needed to happen. I don’t want to make it a habit, maybe a “sometimes” thing for the site. Though I hope they were helpful.
So just because GS is in and around my Tweets to discuss his personal beef, don’t think that I’m personally out there to tank CYBL or whoever. I actually don’t have any skin in the game when it comes to CYBL, so I’m doing these articles purely for the benefit of current shareholders so that they can get better quality reports, whether CYBL agrees or not.
Great – now that that’s cleared up… let’s see if CYBL will decide to do one more re-issue to amend the points I brought up on the Series B. Right now, I sort of don’t think they will (why not do it the first time if they were going to?). But who knows. This is the world of the OTC and not being fully SEC reporting, the rules are sometimes grayer than you’d think…
AITX
Great videos from AITX recently from ISC West. We all know Steve was hustling because it sounded like he blew his voice out on like day one, so I guess that’s a positive all in all! We’re still a ways off from the 10k, likely the end of May or maybe into June with an NT, so all we can do for now is watch for sales PR’s.
I’ll only touch on this briefly, there was another S-1 filed a few days ago to issue another 1.25bn shares via GHS and just today came the raise of the AS to 7.25bn. Anyone with half a brain knew this was coming, so I’ll leave it at this: Business needs money, business get money from non-toxic dilution, business re-invest money to make money, investors take risk that it works. I think I’ve just summed up OTC investing… there you have it!
SIRC / ALPP
Unsurprisingly we got SIRC and ALPP NT’s on the 31st. I am expecting both of those companies to take the entire 15 days, so by my count that’s April 17 (?). This coincides well with ALPP’s shareholder meeting on the 18th which I think should be very illuminating.
We’ll then be getting 10-Q’s for Q1 for both of these companies shortly thereafter in May, which I think will be MUCH more telling than the 10ks we’re about to see.
Why?
ALPP’s is going to be ugly. Fair warning. But 2023 may not be.
SIRC’s will show profits for 2022 but a huge cash deficit. This has been all but confirmed. So I’m more looking forward to the first two Q’s to see if that’s been remedied.
Current Other Watch List
Right now my miscellaneous watch list is:
XALL – closed on three acquisitions which allegedly have 2023 forecast revenue of 25m, but we have no detail on purchase price. XALL has been quite poor with forecasting their acquisitions’ revenue in the past, so I’m not expecting much at first. That being said, their current business is starting to be very fairly valued with this current dip, so I may finally enter a position again.
RJDG – still my largest position in the OTC BY FAR and I’m still adding. Awesome value play regardless of if acquisitions pan out. And not mention no debt or dilution as well as a nice cash balance to help weather any recession storms.
TREP – bit of a funny one but they’re basically like business admin outsourcing and consulting. They are raking in cash and cleaning up their balance sheet to the point where they’ve basically eliminated debt. Another great value play, but they’ve had issues in the past with unforeseen tax bills/litigation… plus delays on an audit. I’m watching very closely because at some point their earnings multiples are getting too low to pass up.
TLSS – I still think I need more time on this one as the business has completely changed in the last 6-12 months. I will be waiting for the Q1 10Q and then maybe will iron out a price target.
SKAS – stinks I had to exit this position, but shout out to my buddy Ravi Desai for upping his position even more into a hefty gain. I think his position is over 7%+ now? His DD on SKAS is next level so I’m not surprised he’s done so well with it.
Also, I’m seeing they closed at 6.35 today which is incredible news for him and gives me the blues (but gains are gains 😊).
General Developments
Future Collaboration
First off, I’ve been chatting with Buffalo Fireside Chats quite a bit the last few weeks and he has been a huge friend to the site with his shout-outs. His interviews are some of the best I’ve seen on the OTC and I think company management agrees given how many of them he gets on the channel, so you should check him out if you haven’t yet.
It sounds like we will be collaborating with a future video (maybe more 😊) so you can hear my not so lovely voice. In all seriousness, we’ll be doing some fun videos in the future where I can hopefully give some tips on analyzing company filings and general DD, maybe we’ll even make it stock specific???? Who knows!! More to come.
Facebook Page!
In true adult male fashion, I just realized the other day that I actually made a Facebook page more than a year ago and completely forgot about it. From my site traffic stats I can see that people actually do get to my site from Facebook, so I’m going to start re-posting all of my articles there in case anyone prefers updates from FB instead of Twitter.
The link is just: https://www.facebook.com/SamAkerFinance
That’s all folks, thanks for reading!
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DISCLAIMER – AT THE TIME OF WRITING THIS ARTICLE I HAVE A LONG POSITION IN SIRC, ALPP, AITX, and RJDG. THIS ARTICLE IS NOT FINANCIAL ADVICE AND IS INTENDED ONLY FOR EDUCATIONAL PURPOSES. I AM NOT A FINANCIAL ADVISOR. DO YOUR OWN RESEARCH.
